Question: The Third Street Eatery is considering a 4 year expansion project that will require an initial fixed asset investment of $ 2 . 0 3

The Third Street Eatery is considering a 4 year expansion project that will require an initial fixed asset investment of $2.03 million. The fixed asset will be depreciated straight-line to zero over its 4 year tax life, after which time it will have a market value of $270,000. The project requires an initial investment in net working capital of $127,000, which will be fully recovered when the project is terminated. Estimated sales are $3,196,000 per year, with costs of $970,000. The tax rate is 30.0% and the required return for the project is 18.10%. Find the project's NPV. Ignore any bonus depreciation.
Group of answer choices
$2,636,697.86
$2,532,437.25
$2,271,468.37
$2,597,720.86
$2,500,566.52

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